Things You Need to Know About 1031 Exchange
1031 exchange is the right option for those individuals who are selling an investment and planning on re-investing. 1031 exchange allows you to sell an investment property and then you re-invest the money you have earned from that sale into another property – it is basically a tax shelter that is allowed by the IRS. When doing a 1031 exchange, you must know that you need to re-invest the entire amount from the sale.
It doesn’t matter whether you are going to invest in in one property or spread amongst several properties, the important thing is that you re-invest the entire amount. From the time that you were able to successfully sell your investment property, you will be given 45 days to pick what properties or properties you are going to buy with the purchase. There is protection built into the process to prevent any abuses from happening. Before you start doing 1031 exchange, it is essential that you consider some few important factors first. It is advantageous if you take your time to do a little online research and study more about 1031 exchange. There are many articles or blogs out there that provide useful tips on how you can become successful in doing 1031 exchange. If you want to make sure that all things will go smoothly, then it is advisable that you hire a 1031 exchange expert.
Indeed, 1031 exchange is a great opportunity for anyone who wanted to try their fortune in the world of investment. If you want to know more about 1031 exchange, then it is recommended that you visit the website of the IRS which features complete information on everything about 1031 exchange. There are actually numbers of investors out there who have no idea about 1031 exchange since they are only focused on buying and selling real estate. Indeed, 1031 exchange is very advantageous.
1031 exchange considered to be one of the best-kept secrets in the IRS. It should be your goal to find the right people or experts who can assist you with 1031 exchange. These consultants can truly help you become wealthier if you follow their wise counsel. The reasons why you need to seek help from 1031 exchange is that these professionals or experts know how to move your properties at expedient times. There are also the ones who will watch the trends in the marketplace. If it is your goal to maximize your leverage, increase cash flow, and preserve equity, then hiring a 1031 exchange is a must. Keep in mind to check the background history and the credentials of the 1031 exchange consultant before you hire him or her.